Bank of America’s Ziana Expects S&P 500 Pullback Risk to Rise From July to September

Bank of America’s head of technical research Paul Ziana said investors should keep hedges in place against further gains in the S&P 500 and prepare for a potential “third-wave” correction in the coming months. According to ChainCatcher, citing a report from Jin10, Ziana said the S&P 500 has risen nearly 17% from its March low, but momentum has shown signs of fatigue after the index hit a recent peak on June 2. Ziana said the index could fall to 6,850, which he described as about a 7.6% decline from current levels. He added that as correction risks build, price action appears “overextended” and momentum is deteriorating. He recommended taking a defensive stance during July to September.